How Amazon's Restaurant Delivery Service Makes Money

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Amazon.com, Inc. (AMZN) likes diversification. The first major online bookseller, Amazon has slowly moved into the general merchandising sector, expanding its holdings to include video production, printing, groceries and hardware development. Amazon’s venture into the restaurant delivery sector – already rife with competition – has left many wondering just how they can make money with a concept that charges nothing for members of their Prime membership service. 

Amazon Makes Money From Their Delivery Service Indirectly

With no markup at all, it comes as no surprise that Amazon is making almost nothing on their restaurant delivery service. Amazon does not add a surcharge on “within-an-hour” restaurant deliveries ordered by customers who have signed up for Amazon’s Prime membership service – customers that are probably already

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